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Boeing This assignment is 12 -15 pages on the Boeing Company operating in the international business environment. 12 pages not including table of contents or reference in APA format. Needing ten...

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Boeing

This assignment is 12-15 pages on the Boeing Company operating in the international business environment. 12 pages not including table of contents or reference in APA format.

Needing ten different references (No Wiki’s or Pedia’s). Use documents from the Boeing Company like annual reports, and financial statements.

6 Parts needed

1. Part1: introduction to the Research Paper. Provide an overview of the research design of the paper. Introduce the various topics that will be addressed in the research paper. Identify the method(s) that will be used to collect the data for the topics and how that data will be evaluated.

2. Part2:Describe Boeing include its principle goods and services, market share, geographic locations where it operates, and major competitors.

3. Part3:Evaluate and discuss whether Boeing could benefit by using Activity Based Costing (ABC). The discussion should include what factor(s) influenced your decision, the ramifications of implementing ABC in the international business environment, and how you would structure the distribution of costs using ABC for your firm.

4. Part4:Evaluate and discuss whether Boeing could benefit by using standard costs. The discussion should include what factor(s) influenced your decision, the ramifications of costs, quantity, and variances, and the ramifications of using standard costs in the international business environment.

5. Part5: Evaluate and discuss how Boeing could benefit by analyzing future projects in terms relevant costs. This discussion should include the firm’s future plans, such as, expansion, consolidation, and downsizing and how relevant costs could be used in the decision making.

6. Part6: conclusion. brief summary of the previous sections, and the conclusions you have reached.

Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
125 Votes
Running Head: BOEING - COMPANY’S INTERNAL ENVIRONMENT 1
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BOEING - COMPANY’S INTERNAL ENVIRONMENT 2
Introduction
Costing plays a crucial role in managerial decision making. There are various costing
techniques available and has their advantage and disadvantage. Some costing techniques are
elevant to some companies and industries. It is essential for a company to select the best suitable
costing technique for them to improve the quality of decision making. Every organization
focuses on achieving higher production and operational efficiency and curtailing the costs to
oost their profitability.
Activity Based Costing, Standard Costing, and relevant costing are the three techniques
of costing that are used in this paper for conducting the analysis. Boeing Corporation is the
selection organization for performing the research. The three costing techniques Activity Based
Costing, Standard Costing, and relevant costing are analyzed as for how Boeing can implement
them in their organization to improve their efficiency and performance. A detailed analysis is
performed, and recommendation based on the analysis is provided.
Boeing an Overview
Boeing Corporation is an aerospace company, and they are involved in designing,
developing, manufacturing, selling, providing service and support to their all their products.
Their product lines are commercial jetliner, aircraft, military, missile defense, satellites, and
human space flight and launch systems and services (Reuters, 2017). The major segments of
Boeing are Boeing Military Aircraft (BMA), Commercial Airplanes; Network & Space Systems
(N&SS), Boeing Capital (BCC), Global Services & Support (GS&S) and Defense, Space &
Security (BDS) (Reuters, 2017).
Boeing has a different business segment, and their market share differs with each
segment. In N&SS the market share of Boeing is 2.85%, BCC market share is 0.41%,
BOEING - COMPANY’S INTERNAL ENVIRONMENT 3
commercial airplanes market share is 76.12%, GS&S market share is 8.17%, precision
engagement & mobility system that includes market share is 14.7%, and in defense they have
significant market hold and has significant market share in US military (CSI Market, n.d.).
Boeing is an American company, and they are present in more than 150 countries across the
globe (Refer Appendix 1) (Boeing, n.d.). Boeing has about 11 research and development centers
across the world. Competitors are as follows:
ï‚· Commercial jet aircraft - Ai
us, Em
aer, a player from Russia (Irkut - United Aircraft
Corporation), China (COMAC) and Japan (Aircraft and Mitsubishi) and Bombardier
(Boeing, 2016, p. 3).
ï‚· BDS competitors - Lockheed Martin Corporation, Raytheon Company, Northrop
Grumman Corporation, SpaceX and General Dynamics Corporation. Non-U.S.
competitors are Ai
us and BAE Systems (Boeing, 2016, p. 3).
Boeing has competitors in every segment and they many time changes due to the new
entrants or competitor losing their market share etc. Boeing faces more competition both from
the domestic and international market that is adding more pressure to the company. It requires
them to stay innovative in the market to retain their market position. The above mentioned are
the major competitors of Boeing.
Activity Based Costing (ABC)
ABC is comparatively new costing method when compared to the other costing methods.
Boeing is a large capital intense company, and they always make a huge investment of on
various inventories for manufacturing different products. They require vast and diversified
inventory and every product needs different process to manufacture them. It has more complex
BOEING - COMPANY’S INTERNAL ENVIRONMENT 4
usiness operations. ABC method is mainly aimed at increasing the accuracy of costing and to
provide a perfect picture about the business (Kumar & Mahto, 2013).
When the numbers of the process involved are more, and they are an inte
elated
allocation of costs appropriate to every segment is a challenge for Boeing. Similarly, most of
their product makes use of similar inventory for manufacturing, and some processes of
production are combined and used by all products and some are unique to the products (Kumar
& Mahto, 2013). As the production process are shared by every segment at some point allocation
of cost as per the usage of them is essential to know the actual product costs.
As more process are involved in the manufacturing of each and every product, it is
challenging for the Boeing to allocate appropriate costs to every process and it's hard to identify
those process that are consuming more time and more costs and not adding value to the product.
Similarly, Boeing cost of products is $72,713 million for $84,399 million of revenue that is
86.15% ($72,713 million / $84,399 million) (Boeing, 2016, p. 49) of the revenue are used for
procuring the product. It indicates the cost associated with the products are higher; Boeing
should make use of best costing system to determine whether they will be in a position to reduce
wastage associated with the manufacturing and eliminating non-value adding process for the
company.
From the above discussion, it is clear that there is a requirement for Boeing to identify the
cost associated with each and every product and every process. All this information can be
accurately obtained by making use of ABC method. In ABC method, every cost that is
associated with the manufacturing, processing, wastage, etc. are taken into consideration. It
separates the directs costs and indirect costs (Dahlgren, Holmstrom, & Nehler,...
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